Are luxury items worth it? I say yes. For example, traveling is a luxury item, granted one many people enjoy, but not necessary for living. Or a new car purchase versus a used car purchase. Do we really need these items to live? No. But they are enjoyable and bring pleasure to our lives. But is it wrong to have these items?
I find that many people when paying off debt will disparage new cars, brand name clothes, cable tv, traveling, larger home, etc. They will say that you are overpaying for these “luxuries”, when it would be cheaper to do without or with less expensive items. True.
But I think it’s about priorities. It’s not wrong to have these luxury items if you can afford it. Nor is it wrong to desire to save to purchase things which are unnecessary but you enjoy.
Often I feel that when we are paying off debt or debt free, we get stuck with this mindset of absolute frugality. That we should not be spending our money except on absolute “needs” versus “wants”. But is this a good idea? I think it really comes down to priorities. What you feel is important for you and your family.
So there is no “right or wrong” answer. It can be good to live very frugally. But it also is not wrong to live with luxuries either. As long as you can accept the trade off. Perhaps working 1 year longer to drive a new car, travel to Africa, or send your child to college. Or maybe not quitting the job you hate, so you can retire sooner. These are all choices we make.
But for now, I’ve contemplated absolutely minimizing our lifestyle and what it would be like if we never ate out, have cable, no entertainment, and only focused on saving money and paying off debt. We could be done probably in 10 years by the age of 40. But would it be worth it? 10 years of super frugal living? Right now I think not. I am not quite ready to give up my luxuries, and I’m accepting of the fact my priorities make it impossible to retire by 40.
But whatever you do, just enjoy the choices you make without regrets.
5 responses so far ↓
1 Barb1954 // Apr 27, 2008 at 12:19 am
I don’t get it. You and your DH are spending all this money on higher education. Why on earth would you want to retire at age 40. Since you’re only in your 20s, you may not understand this, but life really gets fabulous the older you get. Forty is so young. What would you do with the rest of your life. Why are you so busy preparing for a career that you would only do for ten years?
2 dogatemyfinances // Apr 27, 2008 at 3:24 pm
I think it’s very hard to avoid ALL unnecessary expenses. I’m pretty proud of myself for not buying clothes in months (bridesmaid dresses do not count!). But we did buy a new car.
I think it’s not dumb, just too extreme for me, to put everything on hold, especially when you will be able to pay it off really soon and you’re socking away money, as PF bloggers seem to do very well. I know that’s the Dave Ramsey school, but it seems far to harsh for my life and income.
3 Future Millionaire // Apr 27, 2008 at 7:43 pm
I hear ya and second you thoughts. Its all about making smart Money Choices and being responsible.
4 Livingalmostlarge // Apr 27, 2008 at 8:22 pm
I think because we all think that our careers are these 9-5 well paying jobs. But the opportunity to do something different is really hard. NOT stop working but maybe doing something that doesn’t pay as well or is very risky like starting a business.
It’s so much easier to be conservative, have a salary, and just work. But the leap to doing something that doesn’t pay well or you do yourself is huge.
I’m imaging being able to have a complete choice of being the boss. Our neighbors are both MBAs and have debt, but they dream too sometimes of owning their own business. It’s such a leap financially and personally. Especially when you make a decent salary to suddenly go without.
5 frugal zeitgeist // Apr 27, 2008 at 11:59 pm
Yup, I agree; I try really hard not to be judgmental about how other people spent their money because it’s seriously none of my business.
I’m nearly 40 and even with a paid off home, there’s no way I can consider retiring anytime soon. I’m targeting 56 to 60, though will most likely push through to 60 because that’s when my pension (yes, I have one of those) kicks in. In addition, after what we’re seeing with inflation lately, I think the financial cushion had better be pretty darned big for me to feel comfortable leaving the workforce with another 20-40 years of life ahead of me.
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